The government is postponing S$2 billion worth of public sector projects to 2010 and beyond.
This is to ease the shortage of contractors and construction manpower as well as demand for building materials. The projects to be postponed were originally scheduled for next year and 2009.
The move will reduce the demand for construction manpower required in the next two years by up to 40 per cent.
However, essential public sector projects that are strategic and required for Singapore's continued economic growth or needed to meet key social needs will not be affected.
The Building and Construction Authority (BCA) is working with developers and the industry to expand the capacity of existing firms in Singapore.
It is also exploring the possibility of attracting new foreign contractors to Singapore.
The BCA said it will release data on construction demand and prices of building materials to enable the industry to better estimate costs and help reduce uncertainties in construction tenders.
The BCA added that once mega projects such as the Integrated Resorts, Marina Business Financial Centre, Downtown MRT Line and petrochemical plants have been completed, more construction resources and capacity will be available for other new projects beyond 2009. - CNA/yb
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